Reduce your Mortgage Balance
The Hope 4 Homeowners (H4H) program is aimed at helping homeowners that have found themselves owing more on their mortgage than their home is worth. The lower monthly mortgage payment is the result of the program reducing the principal balance of the current mortgage.
How will it Help?
The Hope for Homeowners program puts the homeowner into a mortgage based on their home’s current value. A Hope 4 Homeowners’ loan will be 90% of the current value of the home. Not all aspects of this program are positive. The Federal Housing Administration (FHA) and your current lender will share in any profits of the house when the homeowner sells their home. This offsets the balance that has been forgiven. {The reduced loan amount results in a lower montly payment}.
Take a Look:
Let’s say that your current mortgage balance is $400,000 and your home is now worth $250,000. There are millions of homeowners that find themselves in this scenario. You are currently making a mortgage payment on a loan that is much greater than the value of your home. The Hope to Homeowners loan will issue a new loan that is equivalent to 90% of the home’s current value. $225,000 is the new loan mortgage balance in this scenario. That is a reduction of $175,000 in the principal balance of your mortgage. The new mortgage payment will be based on this new loan amount of $175,000.
I want to Calculate the New Payment?
There are benefits beyond the principal reduction in your mortgage. The Hope to Homeowners loan payment will also be reduced. Let’s say the current mortgage is $400,000 at 6% on a 30 year fixed (the benefits are even greater if you are in an adjustable rate mortgage). The current payment is $2,398. The interest rate will often be reduced but for this example lets assume that it is not. Payments for the Hope for Homeowners loan for this example are $1,348. The mortgage payment is reduced by $1,050 monthly. There are obvious benefits.
There are some qualifying factors that homeowners need to understand. Every homeowner should do their own research into this program to be sure that it makes sense for your scenario. You need to realize that there are some negative aspects of this loan. You may give up some of the equity that your home builds when you sell your home. Americans will be able to keep their homes with this program. The H4H program can and will provide some much needed hope to homeowners that are upside down on their mortgage.
Tuesday, June 30, 2009
Will You Outlive Your Money?
Before you retire, take the time to figure out just how much money you’ll need for retirement. One of the biggest concerns for retirees is whether their retirement savings will last the rest of their lives–will they run out of money? Social Security is not the guaranteed source of retirement income it once was, and people generally don’t want to depend on public assistance or their children during their retirement years. Whether you might run out of money hinges upon several factors; how much money you’ve saved, how long you need your savings to last, and how quickly you spend your money, to name a few. You’ll be better off if you can tackle these issues before retirement by maximizing your retirement nest egg. But, if you are entering retirement and you still have concerns about making your savings last, there are several steps you can take even at this late date. The following are tips and ideas to help make sure you don’t outlive your money.
Tips to help make your savings last longer
You may be able to stretch your retirement savings by adjusting your spending habits. You might be able to get by with only minor changes to your spending habits, but if your retirement savings are far below your projected needs, drastic changes may be necessary. Saving even a little money can really add up if you do it consistently and earn a reasonable rate of return.
Make major changes to your spending patterns
If you have major concerns about running out of money, you may need to change your spending patterns drastically in order to make your savings last. The following are some suggested changes you may choose to implement:
· Consolidate any outstanding loans to reduce your interest rate or monthly payment. Consider using home equity financing for this purpose.
· If your home mortgage is paid in full, weigh the pros and cons of a reverse mortgage to increase your cash flow.
· Reduce your housing expenses by moving to a less expensive home or apartment.
· If you are still paying off your home mortgage, consider refinancing your mortgage if interest rates have dropped since you took the loan.
· Sell your second car, especially if it is only used occasionally.
· Shop around for less expensive insurance. You’d be amazed how much you can save in a year (and even more over a period of years) by switching to insurance policies that have lower premiums, but that still provide the coverage you need. Life and health insurance are the two areas where you probably stand to save the most, since premiums can go up dramatically with age and declining health. Consult your insurance professional.
· Have your child enroll in or transfer to a less expensive college (a state university as opposed to a private one, for example). This can be a particularly good idea if the cheaper college has a strong reputation and can provide a quality education. You could save significantly over the course of just two or three years.
Make minor changes to your spending patterns
Minor changes can also make a difference. You’d be surprised how quickly your savings add up when you implement a written budget and make several small changes to your spending patterns. If you have only minor concerns about making your retirement savings last, small changes to your spending habits may be enough to correct this problem. The following are several ideas you might consider when adjusting your spending patterns:
· Buy only the auto and homeowners insurance you really need. For example, consider canceling collision insurance on an older vehicle and self-insure instead. This may not save you a bundle, but every little bit helps. Of course, if you do have an accident, the amount you saved on your premium could be wiped out very quickly.
· Shop for the best interest rate whenever you need a loan.
· Switch to a lower interest credit card. Transfer your balances from higher interest cards and then cancel the old accounts.
· Eat dinner at home, and carry “brown-bag” lunches instead of eating out.
· Consider buying a well-maintained used car instead of a new car.
· Subscribe to the magazines and newspapers you read instead of paying full price at the newsstand.
· Where possible, cut down on utility costs and other household expenses.
· Get books and movies from your local library instead of buying or renting them.
· Plan your expenditures and avoid impulse buying.
Manage IRA distributions carefully
If you’re trying to stretch your savings, you’ll want to withdraw money from your IRA as slowly as possible. Not only will this conserve the principal balance, but it will also give your IRA funds the opportunity to continue growing tax deferred during your retirement years. However, bear in mind that you must start taking required minimum distributions (RMDs) from traditional IRAs (but not Roth IRAs) after age 70½.
Use caution when spending down your investment principal
Don’t assume you’ll be able to live on the earnings from your investment portfolio and your retirement account for the rest of your life. At some point, you will probably have to start drawing on the principal. You’ll want to be careful not to spend too much too soon. This can be a great temptation particularly early in your retirement, because the tendency is to travel extensively and buy the things you couldn’t afford during your working years. A good guideline is to make sure you don’t spend more than 5 percent of your principal during the first five years of retirement. If you whittle away your principal too quickly, you won’t be able to earn enough on the remaining principal to carry you through the later years.
Portfolio review
Your investment portfolio will likely be one of your major sources of retirement income. As such, it is important to make sure that your level of risk, your choice of investment vehicles, and your asset allocation are appropriate considering your long-term objectives. While you don’t want to lose your investment principal, you also don’t want to lose out to inflation. A review of your investment portfolio is essential in determining whether your money will last.
Continue to invest for growth
Traditional wisdom holds that retirees should value the safety of their principal above all else. For this reason, some people totally shift their investment portfolio to fixed-income investments, such as bonds and money market accounts, as they approach retirement. The problem with this approach is that it completely ignores the effects of inflation. You will actually lose money if the return on your investments does not keep up with inflation. The allocation of your portfolio should generally become progressively more conservative as you grow older, but it is wise to consider maintaining at least a portion of your portfolio in growth investments. Many financial professionals recommend that you follow this simple rule of thumb: The percentage of stocks or stock mutual funds in your portfolio should equal approximately 100 percent minus your age. So, for example, at age 60 your portfolio should contain 40 percent stocks and stock funds (100% – 60% = 40%). Obviously, you should adjust this rule according to your risk tolerance and other personal factors.
Basic rules of investment still apply during retirement
Although you will undoubtedly make changes to your investment portfolio as you reach retirement age, you should still bear in mind the basic rules of investing. Diversification and asset allocation remain important as you make the transition from accumulation to utilization.
Laddering investments
Laddering investments is a method of controlling your investments to avoid having them all mature at the same time. The principle of laddering is simple: Stagger the maturity dates of the associated deposits or investments so that they mature in different time periods. You can apply laddering to any type of deposit, loan, or security having a specified maturity date, such as bonds.
Laddering can reduce interest rate risk
Interest rates rise and fall in response to many factors. Consequently, they are largely unpredictable. Whether you apply laddering to a cash reserve or use it in portfolio investing, minimizing interest rate risk is one of its most important benefits. Thus, you are unlikely to be consistently locked into lower-than-market interest rates.
A single large deposit or investment that matures during an interest rate slump will leave you with two undesirable choices regarding reinvestment. You can hold the money in a low-interest savings account until rates improve or roll it over at the now low rate. However, a later rebound of interest rates can catch you locked into the prior low rate for an extended period. Breaking your investment into smaller pieces and laddering maturity dates allows you to avoid this situation.
How do you do it?
When you first begin your laddering strategy, you will need to acquire several term deposits (e.g., certificates of deposit) or securities with specified maturity dates. Initially, your individual investments should have terms of varying lengths, and you should intend to hold them until maturity. This will set up your staggered maturity dates. For example, you might purchase three separate certificates of deposit–one with a three-month term, one with a six-month term, and one with a nine-month term. When you reinvest as your CDs mature, your new investments should each be of the same length to perpetuate the staggering, or laddering, of maturity dates. Keep your laddering strategy intact by promptly redepositing each maturing investment for a new term.
Long-term care insurance
A catastrophic injury or debilitating disease that requires you to enter a nursing home can destroy your best-laid financial plans. You will need to decide whether to take out a long-term care insurance policy that may cover nursing home care, home health care, adult day care, respite care, and residential care. If you decide to purchase such a policy, you’ll need to choose the best time to do so. Typically, unless you have a chronic condition that makes you more likely to require long-term care, there is generally no reason to begin thinking about this issue before age 50. Usually, there is no reason to purchase such a policy before age 60.
Won’t Medicare pay for any long-term care expenses you might incur?
Contrary to popular belief, Medicare will not pay for most long-term care expenses, and neither will any health insurance you may have through your employer. Medicare benefits are only available if you enter a nursing home within 30 days after a hospital stay of three days or more. Even then, Medicare typically will only provide full coverage for 20 days of skilled nursing home care in Medicare-approved facilities. (Most people do not require skilled nursing care, as this is generally defined as the care of a physician or registered nurse). After 20 days, Medicare will cover part of the cost of care. You will pay $128 per day in 2008, and Medicare will cover the rest. No further coverage is available after 100 days. Studies show that approximately 40 percent of all people over age 65 will require nursing home care sometime before they die. The average nursing home stay is about 462 days, and if you are part of that 40 percent, your long-term care expenses could easily use up your hard-earned savings, leaving you with little or no money on which to live.
What about Medicaid?
Medicaid is sponsored jointly by federal and state governments. Each state’s Medicaid program is required to provide certain minimum medical benefits to qualified persons, including inpatient hospital services, nursing home care, and physicians’ services. States also have the option of providing additional services. All states require proof of financial need. However, each state has different rules regarding benefits and eligibility, so it is essential that you understand your state’s Medicaid program before you decide that Medicaid will provide adequate long-term care coverage.
How much does long-term care insurance cost?
Unfortunately, long-term care insurance can be quite expensive. If you begin coverage when you are younger, premiums will be more reasonable, but you will likely be paying for the insurance for a much longer period of time. Although the cost of LTCI varies depending on your age, the benefits, and the insurer you choose, a person aged 65 to 69 purchasing an individual policy can expect to pay premiums of between $2,000 and $10,000 per year
Tips to help make your savings last longer
You may be able to stretch your retirement savings by adjusting your spending habits. You might be able to get by with only minor changes to your spending habits, but if your retirement savings are far below your projected needs, drastic changes may be necessary. Saving even a little money can really add up if you do it consistently and earn a reasonable rate of return.
Make major changes to your spending patterns
If you have major concerns about running out of money, you may need to change your spending patterns drastically in order to make your savings last. The following are some suggested changes you may choose to implement:
· Consolidate any outstanding loans to reduce your interest rate or monthly payment. Consider using home equity financing for this purpose.
· If your home mortgage is paid in full, weigh the pros and cons of a reverse mortgage to increase your cash flow.
· Reduce your housing expenses by moving to a less expensive home or apartment.
· If you are still paying off your home mortgage, consider refinancing your mortgage if interest rates have dropped since you took the loan.
· Sell your second car, especially if it is only used occasionally.
· Shop around for less expensive insurance. You’d be amazed how much you can save in a year (and even more over a period of years) by switching to insurance policies that have lower premiums, but that still provide the coverage you need. Life and health insurance are the two areas where you probably stand to save the most, since premiums can go up dramatically with age and declining health. Consult your insurance professional.
· Have your child enroll in or transfer to a less expensive college (a state university as opposed to a private one, for example). This can be a particularly good idea if the cheaper college has a strong reputation and can provide a quality education. You could save significantly over the course of just two or three years.
Make minor changes to your spending patterns
Minor changes can also make a difference. You’d be surprised how quickly your savings add up when you implement a written budget and make several small changes to your spending patterns. If you have only minor concerns about making your retirement savings last, small changes to your spending habits may be enough to correct this problem. The following are several ideas you might consider when adjusting your spending patterns:
· Buy only the auto and homeowners insurance you really need. For example, consider canceling collision insurance on an older vehicle and self-insure instead. This may not save you a bundle, but every little bit helps. Of course, if you do have an accident, the amount you saved on your premium could be wiped out very quickly.
· Shop for the best interest rate whenever you need a loan.
· Switch to a lower interest credit card. Transfer your balances from higher interest cards and then cancel the old accounts.
· Eat dinner at home, and carry “brown-bag” lunches instead of eating out.
· Consider buying a well-maintained used car instead of a new car.
· Subscribe to the magazines and newspapers you read instead of paying full price at the newsstand.
· Where possible, cut down on utility costs and other household expenses.
· Get books and movies from your local library instead of buying or renting them.
· Plan your expenditures and avoid impulse buying.
Manage IRA distributions carefully
If you’re trying to stretch your savings, you’ll want to withdraw money from your IRA as slowly as possible. Not only will this conserve the principal balance, but it will also give your IRA funds the opportunity to continue growing tax deferred during your retirement years. However, bear in mind that you must start taking required minimum distributions (RMDs) from traditional IRAs (but not Roth IRAs) after age 70½.
Use caution when spending down your investment principal
Don’t assume you’ll be able to live on the earnings from your investment portfolio and your retirement account for the rest of your life. At some point, you will probably have to start drawing on the principal. You’ll want to be careful not to spend too much too soon. This can be a great temptation particularly early in your retirement, because the tendency is to travel extensively and buy the things you couldn’t afford during your working years. A good guideline is to make sure you don’t spend more than 5 percent of your principal during the first five years of retirement. If you whittle away your principal too quickly, you won’t be able to earn enough on the remaining principal to carry you through the later years.
Portfolio review
Your investment portfolio will likely be one of your major sources of retirement income. As such, it is important to make sure that your level of risk, your choice of investment vehicles, and your asset allocation are appropriate considering your long-term objectives. While you don’t want to lose your investment principal, you also don’t want to lose out to inflation. A review of your investment portfolio is essential in determining whether your money will last.
Continue to invest for growth
Traditional wisdom holds that retirees should value the safety of their principal above all else. For this reason, some people totally shift their investment portfolio to fixed-income investments, such as bonds and money market accounts, as they approach retirement. The problem with this approach is that it completely ignores the effects of inflation. You will actually lose money if the return on your investments does not keep up with inflation. The allocation of your portfolio should generally become progressively more conservative as you grow older, but it is wise to consider maintaining at least a portion of your portfolio in growth investments. Many financial professionals recommend that you follow this simple rule of thumb: The percentage of stocks or stock mutual funds in your portfolio should equal approximately 100 percent minus your age. So, for example, at age 60 your portfolio should contain 40 percent stocks and stock funds (100% – 60% = 40%). Obviously, you should adjust this rule according to your risk tolerance and other personal factors.
Basic rules of investment still apply during retirement
Although you will undoubtedly make changes to your investment portfolio as you reach retirement age, you should still bear in mind the basic rules of investing. Diversification and asset allocation remain important as you make the transition from accumulation to utilization.
Laddering investments
Laddering investments is a method of controlling your investments to avoid having them all mature at the same time. The principle of laddering is simple: Stagger the maturity dates of the associated deposits or investments so that they mature in different time periods. You can apply laddering to any type of deposit, loan, or security having a specified maturity date, such as bonds.
Laddering can reduce interest rate risk
Interest rates rise and fall in response to many factors. Consequently, they are largely unpredictable. Whether you apply laddering to a cash reserve or use it in portfolio investing, minimizing interest rate risk is one of its most important benefits. Thus, you are unlikely to be consistently locked into lower-than-market interest rates.
A single large deposit or investment that matures during an interest rate slump will leave you with two undesirable choices regarding reinvestment. You can hold the money in a low-interest savings account until rates improve or roll it over at the now low rate. However, a later rebound of interest rates can catch you locked into the prior low rate for an extended period. Breaking your investment into smaller pieces and laddering maturity dates allows you to avoid this situation.
How do you do it?
When you first begin your laddering strategy, you will need to acquire several term deposits (e.g., certificates of deposit) or securities with specified maturity dates. Initially, your individual investments should have terms of varying lengths, and you should intend to hold them until maturity. This will set up your staggered maturity dates. For example, you might purchase three separate certificates of deposit–one with a three-month term, one with a six-month term, and one with a nine-month term. When you reinvest as your CDs mature, your new investments should each be of the same length to perpetuate the staggering, or laddering, of maturity dates. Keep your laddering strategy intact by promptly redepositing each maturing investment for a new term.
Long-term care insurance
A catastrophic injury or debilitating disease that requires you to enter a nursing home can destroy your best-laid financial plans. You will need to decide whether to take out a long-term care insurance policy that may cover nursing home care, home health care, adult day care, respite care, and residential care. If you decide to purchase such a policy, you’ll need to choose the best time to do so. Typically, unless you have a chronic condition that makes you more likely to require long-term care, there is generally no reason to begin thinking about this issue before age 50. Usually, there is no reason to purchase such a policy before age 60.
Won’t Medicare pay for any long-term care expenses you might incur?
Contrary to popular belief, Medicare will not pay for most long-term care expenses, and neither will any health insurance you may have through your employer. Medicare benefits are only available if you enter a nursing home within 30 days after a hospital stay of three days or more. Even then, Medicare typically will only provide full coverage for 20 days of skilled nursing home care in Medicare-approved facilities. (Most people do not require skilled nursing care, as this is generally defined as the care of a physician or registered nurse). After 20 days, Medicare will cover part of the cost of care. You will pay $128 per day in 2008, and Medicare will cover the rest. No further coverage is available after 100 days. Studies show that approximately 40 percent of all people over age 65 will require nursing home care sometime before they die. The average nursing home stay is about 462 days, and if you are part of that 40 percent, your long-term care expenses could easily use up your hard-earned savings, leaving you with little or no money on which to live.
What about Medicaid?
Medicaid is sponsored jointly by federal and state governments. Each state’s Medicaid program is required to provide certain minimum medical benefits to qualified persons, including inpatient hospital services, nursing home care, and physicians’ services. States also have the option of providing additional services. All states require proof of financial need. However, each state has different rules regarding benefits and eligibility, so it is essential that you understand your state’s Medicaid program before you decide that Medicaid will provide adequate long-term care coverage.
How much does long-term care insurance cost?
Unfortunately, long-term care insurance can be quite expensive. If you begin coverage when you are younger, premiums will be more reasonable, but you will likely be paying for the insurance for a much longer period of time. Although the cost of LTCI varies depending on your age, the benefits, and the insurer you choose, a person aged 65 to 69 purchasing an individual policy can expect to pay premiums of between $2,000 and $10,000 per year
Saturday, June 13, 2009
How to Read a Forex Chart
The forex chart is among the most essential tools in a forex trader’s arsenal. Simply put, it is a graph of a particular currency pair’s performance over a given period of time. Reading forex charts is key to a trader’s business, so it’s important to know how to read them and understand what they mean.
Every forex chart will be labeled with a currency pair: EUR/USD, USD/GBP, etc. Remember, all forex trading deals with different countries’ currency in relation to each other. The EUR/USD chart, for example, tells you how the euro and the U.S. dollar compare.
Along the bottom of the chart is the timeline — 15 minutes, an hour, a day, a week, or some other period. Going up the right-hand side are incremental amounts. For the EUR/USD chart, the amounts might be 1.2531 at the bottom, going up to 1.2561 at the top. And of course the middle of the chart shows what position the EUR/USD pair held at what time.
The forex chart is useful because it shows in clear terms how a currency pair is performing. You can see at a glance whether a currency is getting stronger or weaker, and you can act accordingly. Selecting the time frame helps you see very minor trends (in a 15-minute period, say) or more long-term ones (over the course of several days, as an example).
You can find forex charts all over the Internet, on Web sites for forex brokers, tutors, and on other forex-related sites. Those are acceptable for looking at trends now and then. But to be a serious trader, you need to have access to charts much more readily, without having to go to a Web site. Fortunately there is trading software that fills that gap by providing you forex charts, too (you need to have broadband Internet so you can be “always connected”). Being able to access the latest charts is key to successful trading.
With dozens of world currencies, there are far too many possible currency pairs for anyone to keep track of mentally. Forex charts show at a glance how currency pairs are performing, and good software helps you to store a selection of charts as “favorites.” You’ll want to keep an eye on the charts that represent investments you’ve already made, and it’s smart to have a few extra saved, too, so you can watch for trends in currencies you haven’t traded yet. You never know when a lucrative new opportunity is going to be revealed.
Source: Currency Pairs
Every forex chart will be labeled with a currency pair: EUR/USD, USD/GBP, etc. Remember, all forex trading deals with different countries’ currency in relation to each other. The EUR/USD chart, for example, tells you how the euro and the U.S. dollar compare.
Along the bottom of the chart is the timeline — 15 minutes, an hour, a day, a week, or some other period. Going up the right-hand side are incremental amounts. For the EUR/USD chart, the amounts might be 1.2531 at the bottom, going up to 1.2561 at the top. And of course the middle of the chart shows what position the EUR/USD pair held at what time.
The forex chart is useful because it shows in clear terms how a currency pair is performing. You can see at a glance whether a currency is getting stronger or weaker, and you can act accordingly. Selecting the time frame helps you see very minor trends (in a 15-minute period, say) or more long-term ones (over the course of several days, as an example).
You can find forex charts all over the Internet, on Web sites for forex brokers, tutors, and on other forex-related sites. Those are acceptable for looking at trends now and then. But to be a serious trader, you need to have access to charts much more readily, without having to go to a Web site. Fortunately there is trading software that fills that gap by providing you forex charts, too (you need to have broadband Internet so you can be “always connected”). Being able to access the latest charts is key to successful trading.
With dozens of world currencies, there are far too many possible currency pairs for anyone to keep track of mentally. Forex charts show at a glance how currency pairs are performing, and good software helps you to store a selection of charts as “favorites.” You’ll want to keep an eye on the charts that represent investments you’ve already made, and it’s smart to have a few extra saved, too, so you can watch for trends in currencies you haven’t traded yet. You never know when a lucrative new opportunity is going to be revealed.
Source: Currency Pairs
National Financial Crisis May Grow The Number Of Non-Insured Drivers To Record Levels
Approximately 17% of drivers across the United States may be driving without insurance by 2010, these figures were compiled from research done by the Insurance Research Council.
Although the estimated amount of uninsured drivers went down nationally from 14.9% in 2003 to 13.8% in 2007, this recession is expected to elevate the amount of non-insured drivers.
A recently published study, “Uninsured Motorists, 2008 Edition,” configures the amount of non-insured motorist across the country and by state from 2005 to 2007. The Insurance Research Council calculates the population of non-insured drivers by examining the ratio between injury claims made by non-insured motorists and insured motorists.
The research show recently obtained stats by state for bodily injury liability claims and non-insured drivers claim frequency and the ratio between bodily injury claims and non-insured drivers.
The severity of the non-insured driver situation differed greatly from state to state. In 2007, the biggest five non-insured motorist estimates by state were New Mexico 29%, Mississippi 28%, Alabama 26%, Oklahoma 24%, and Florida 23%. The five states with the lowest estimates of non-insured motorists were Massachusetts 1%, Maine 4&, North Dakota 5%, New York 5%, and Vermont 6%.
The data also showed a large correlation unemployed and the percent of non-insured drivers. The research shows if the unemployment rate increased to 1% it will correlate to an increase in the non-insured driver rate to more than 3/4 of 1%. Based on the projected unemployment rate figures, the percentage of non-insured drivers is expected to increase from 13.8% in 2007 to 16.1% in 2010.
“An increase in the number of uninsured motorists is an unfortunate consequence of the economic downturn and illustrates how virtually everyone is affected by recent economic developments,” said the Senior Vice President of the Insurance Research Council Elizabeth A. Sprinkel. “Responsible drivers who purchase insurance end up paying for injuries caused by uninsured drivers.”
The Insurance Research Council research studied data obtained from nine insurance companies, representing approximately 50% of the private passenger vehicle insurance market nationally.
With all this happening it will be hard to get discount auto insurance because as non-insured motorist claims grow the premiums for current insureds will also go up. Your best chance to get inexpensive auto insurance is to try to get as many free insurance quotes as possible and compare rates between companies.
Source: Insurance
Although the estimated amount of uninsured drivers went down nationally from 14.9% in 2003 to 13.8% in 2007, this recession is expected to elevate the amount of non-insured drivers.
A recently published study, “Uninsured Motorists, 2008 Edition,” configures the amount of non-insured motorist across the country and by state from 2005 to 2007. The Insurance Research Council calculates the population of non-insured drivers by examining the ratio between injury claims made by non-insured motorists and insured motorists.
The research show recently obtained stats by state for bodily injury liability claims and non-insured drivers claim frequency and the ratio between bodily injury claims and non-insured drivers.
The severity of the non-insured driver situation differed greatly from state to state. In 2007, the biggest five non-insured motorist estimates by state were New Mexico 29%, Mississippi 28%, Alabama 26%, Oklahoma 24%, and Florida 23%. The five states with the lowest estimates of non-insured motorists were Massachusetts 1%, Maine 4&, North Dakota 5%, New York 5%, and Vermont 6%.
The data also showed a large correlation unemployed and the percent of non-insured drivers. The research shows if the unemployment rate increased to 1% it will correlate to an increase in the non-insured driver rate to more than 3/4 of 1%. Based on the projected unemployment rate figures, the percentage of non-insured drivers is expected to increase from 13.8% in 2007 to 16.1% in 2010.
“An increase in the number of uninsured motorists is an unfortunate consequence of the economic downturn and illustrates how virtually everyone is affected by recent economic developments,” said the Senior Vice President of the Insurance Research Council Elizabeth A. Sprinkel. “Responsible drivers who purchase insurance end up paying for injuries caused by uninsured drivers.”
The Insurance Research Council research studied data obtained from nine insurance companies, representing approximately 50% of the private passenger vehicle insurance market nationally.
With all this happening it will be hard to get discount auto insurance because as non-insured motorist claims grow the premiums for current insureds will also go up. Your best chance to get inexpensive auto insurance is to try to get as many free insurance quotes as possible and compare rates between companies.
Source: Insurance
Find How You Can Help In This Economic Recovery
After decades of making things worse our administration is about to start the long mission of healing the economy. But of course it’s not that simple. Every step along the way they will have to fight those who don’t really want economic recovery. All they want is to reset things to the period where they personally were raking in the dough. And it doesn’t matter if this was just the week before things went south.
Of course this will also reset the environment that made this collapse possible. And if possible they would do this for as long as they can to squeeze the last nickel into their pocket.
For them the challenge is to fool everyone else for their own enrichment. You might ask why would they do that? The simple answer is: Greed! With this in mind let’s move along. The first thing to do is review the big picture. Originaly Social Security was set up as a safety net for retirement.
But the lure of all that money just lying about was too much. So the embezzlement began. At first the robbers said the money would be replaced. That lie was never believed.
In fact Social Security is now considered an entitlement by the the same parties that stole from it. You might wonder what is the connection here? This is the core pattern!
The founding fathers of America structured a government that could function. That structure has been twisted and corrupted. The money that our government prints was at one point certificates of gold. The gold stored in Fort Knox! Greed came into play so more money was printed then there was gold. This has continued until your money is not worth the paper it is printed on! If you do the math it becomes clear. This is the biggest ponzi scam of ALL TIME! What we have seen in recent times is original IOU’s being stolen and replaced by worthless IOU’s. Now here we are caught in this web of lies. And as incredible as it may seem many are asking why were we are having trouble getting credit. The assets are real but those asking for the loans are insufficient. They are unable to repay loans with true value. So America borrows from other nations.
And some of them don’t like us much. Is it any wonder that it will take a former Harvard Law Professor to help get us out of this one! Oh don’t forget we have some wars going on too.
At the time of this writing I only count 2, but of course that is subject to change. Is the situation hopeless? That depends on how you look at it. President Obama tells us this is a opportunity to expand our horizons and repair our infrastructure. This reminds me of the experiment of two little brothers. So if Obama wants to look for a pony in all of this shit, maybe he can pull it off. So far things are looking up.
Of course this will also reset the environment that made this collapse possible. And if possible they would do this for as long as they can to squeeze the last nickel into their pocket.
For them the challenge is to fool everyone else for their own enrichment. You might ask why would they do that? The simple answer is: Greed! With this in mind let’s move along. The first thing to do is review the big picture. Originaly Social Security was set up as a safety net for retirement.
But the lure of all that money just lying about was too much. So the embezzlement began. At first the robbers said the money would be replaced. That lie was never believed.
In fact Social Security is now considered an entitlement by the the same parties that stole from it. You might wonder what is the connection here? This is the core pattern!
The founding fathers of America structured a government that could function. That structure has been twisted and corrupted. The money that our government prints was at one point certificates of gold. The gold stored in Fort Knox! Greed came into play so more money was printed then there was gold. This has continued until your money is not worth the paper it is printed on! If you do the math it becomes clear. This is the biggest ponzi scam of ALL TIME! What we have seen in recent times is original IOU’s being stolen and replaced by worthless IOU’s. Now here we are caught in this web of lies. And as incredible as it may seem many are asking why were we are having trouble getting credit. The assets are real but those asking for the loans are insufficient. They are unable to repay loans with true value. So America borrows from other nations.
And some of them don’t like us much. Is it any wonder that it will take a former Harvard Law Professor to help get us out of this one! Oh don’t forget we have some wars going on too.
At the time of this writing I only count 2, but of course that is subject to change. Is the situation hopeless? That depends on how you look at it. President Obama tells us this is a opportunity to expand our horizons and repair our infrastructure. This reminds me of the experiment of two little brothers. So if Obama wants to look for a pony in all of this shit, maybe he can pull it off. So far things are looking up.
Find How You Can Help In This Economic Recovery
After decades of making things worse our administration is about to start the long mission of healing the economy. But of course it’s not that simple. Every step along the way they will have to fight those who don’t really want economic recovery. All they want is to reset things to the period where they personally were raking in the dough. And it doesn’t matter if this was just the week before things went south.
Of course this will also reset the environment that made this collapse possible. And if possible they would do this for as long as they can to squeeze the last nickel into their pocket.
For them the challenge is to fool everyone else for their own enrichment. You might ask why would they do that? The simple answer is: Greed! With this in mind let’s move along. The first thing to do is review the big picture. Originaly Social Security was set up as a safety net for retirement.
But the lure of all that money just lying about was too much. So the embezzlement began. At first the robbers said the money would be replaced. That lie was never believed.
In fact Social Security is now considered an entitlement by the the same parties that stole from it. You might wonder what is the connection here? This is the core pattern!
The founding fathers of America structured a government that could function. That structure has been twisted and corrupted. The money that our government prints was at one point certificates of gold. The gold stored in Fort Knox! Greed came into play so more money was printed then there was gold. This has continued until your money is not worth the paper it is printed on! If you do the math it becomes clear. This is the biggest ponzi scam of ALL TIME! What we have seen in recent times is original IOU’s being stolen and replaced by worthless IOU’s. Now here we are caught in this web of lies. And as incredible as it may seem many are asking why were we are having trouble getting credit. The assets are real but those asking for the loans are insufficient. They are unable to repay loans with true value. So America borrows from other nations.
And some of them don’t like us much. Is it any wonder that it will take a former Harvard Law Professor to help get us out of this one! Oh don’t forget we have some wars going on too.
At the time of this writing I only count 2, but of course that is subject to change. Is the situation hopeless? That depends on how you look at it. President Obama tells us this is a opportunity to expand our horizons and repair our infrastructure. This reminds me of the experiment of two little brothers. So if Obama wants to look for a pony in all of this shit, maybe he can pull it off. So far things are looking up.
Of course this will also reset the environment that made this collapse possible. And if possible they would do this for as long as they can to squeeze the last nickel into their pocket.
For them the challenge is to fool everyone else for their own enrichment. You might ask why would they do that? The simple answer is: Greed! With this in mind let’s move along. The first thing to do is review the big picture. Originaly Social Security was set up as a safety net for retirement.
But the lure of all that money just lying about was too much. So the embezzlement began. At first the robbers said the money would be replaced. That lie was never believed.
In fact Social Security is now considered an entitlement by the the same parties that stole from it. You might wonder what is the connection here? This is the core pattern!
The founding fathers of America structured a government that could function. That structure has been twisted and corrupted. The money that our government prints was at one point certificates of gold. The gold stored in Fort Knox! Greed came into play so more money was printed then there was gold. This has continued until your money is not worth the paper it is printed on! If you do the math it becomes clear. This is the biggest ponzi scam of ALL TIME! What we have seen in recent times is original IOU’s being stolen and replaced by worthless IOU’s. Now here we are caught in this web of lies. And as incredible as it may seem many are asking why were we are having trouble getting credit. The assets are real but those asking for the loans are insufficient. They are unable to repay loans with true value. So America borrows from other nations.
And some of them don’t like us much. Is it any wonder that it will take a former Harvard Law Professor to help get us out of this one! Oh don’t forget we have some wars going on too.
At the time of this writing I only count 2, but of course that is subject to change. Is the situation hopeless? That depends on how you look at it. President Obama tells us this is a opportunity to expand our horizons and repair our infrastructure. This reminds me of the experiment of two little brothers. So if Obama wants to look for a pony in all of this shit, maybe he can pull it off. So far things are looking up.
Thursday, June 11, 2009
USD surges, as risk aversion returns with a vengeance
USD: Higher, supported by safe haven flows as equity markets tumble JPY: Higher, supported in cross by a spike in risk aversion EUR: Lower, pressured by Trichet’s comment that rates may be cut 25 basis points next month CHF: Lower, downside limited by safe haven flows, threat of intervention is rising GBP: Lower, pressured by report of rising cost of UK bank bailout, CBI cuts growth forecast CAD and AUD: AUD & CAD lower, Australian PPI declines, tracking weaker equities and falling CRB
European markets drop affected by swine flu; Euro and Pound try to pick up
European markets drop affected by swine flu; Euro and Pound try to pick upFITITOL-->FXstreet.com (Barcelona) - European markets are feeling the pressure from swine flu and main indexes are going through losses at the opening. Euro and Pound attempt recovery after declines in Asian session.Eurostoxx 50 Index drops 1.71% with German DAX Index 1.57% down, and French CAC 1.62% down and London FTSE Index 1.51% down, short after the opening.Swine flu outbreak seems to be the hot topic on the markets today. In one hand, shares of pharmaceutical firms such as Roche or GlaxoSmithKline are rising, while European trade and leisure companies, especially airlines, are being hit.
Oil above $61 ahead of OPEC meeting
Oil prices edged lower but hovered above $61 a barrel Monday in Asia as investors eyed an OPEC meeting this week and weighed evidence of a global economic recovery.
Trading was light because U.S. markets are closed Monday for Memorial Day.
Benchmark crude for July delivery was down 35 cents to $61.32 a barrel by midday in Singapore in electronic trading on the New York Mercantile Exchange. On Friday, the contract rose 62 cents to settle at $61.67.
Oil has rallied on investor optimism that the worst of the global economic downturn is over. Traders will get fresh data to mull this week when the U.S. releases a consumer confidence index for May and reports on sales of existing and new homes last month.
In Asia, there are signs that the drop in exports has bottomed, although the outlook remains murky.
Investors will also be looking for evidence of increased demand as the U.S. summer driving season begins.
“The $60 level implies that we’re going to have a V-shaped recovery in the global economy, and there’s really very little evidence of that,” said Victor Shum, an energy analyst with consultancy Purvin & Gertz in Singapore.
“In the near-term, the rhetoric about post-Memorial Day driving activity may provide support, but eventually fundamentals will re-exert themselves in the market,” he said.
The Organization of Petroleum Exporting Countries meets on Wednesday in Vienna to discuss a possible production cut that would add to 4.2 million barrels a day of output reductions the cartel has announced since September.
OPEC leaders this year have said they want the price of crude at $70 a barrel, and most analysts say the recent jump to above $60 from below $35 in March will keep the group from any further production cuts.
“We don’t expect any changes in output targets,” Shum said. “The price is too high to cut.”In other Nymex trading, gasoline for June delivery was steady at $1.84 a gallon and heating oil fell 0.72 cent to $1.53 a gallon. Natural gas for June delivery dropped 2.5 cents to $3.49 per 1,000 cubic feet.
In London, Brent prices slid 29 cents to $60.49 a barrel on the ICE Futures exchange. Posted by graadil at 3:10 PM 0 comments Monday, May 18, 2009Taxpayers foreign assets: FBR has authority to investigate ISLAMABAD: The Federal Board of Revenue (FBR) has legal authority to investigate assets held outside Pakistan, depending on whether the tax authorities have sufficient evidence of unexplained assets under Income Tax Ordinance 2001. Sources told Business Recorder on Saturday that if the assets purchased outside Pakistan have not been declared in the wealth statement, it is difficult to check the source or extent of investment. Without authentic evidence, it is impossible to assess the source of investment.
However, the most important issue during the entire exercise is to determine the resident status of the taxpayer. This alone would form the basis for investigating any Pakistani with assets abroad. Resident status means a person who has lived in Pakistan or stayed in Pakistan for 183 days or more in one fiscal year under Income Tax Ordinance 2001.
Under relevant clause on exchange of information under the Avoidance of Double Taxation Convention, the department can ask tax authorities of other countries (bilateral agreement) to provide taxpayer profile or information about a Pakistani living abroad. Based on this information, the income tax department can probe assets abroad. If the source of investment has not been explained by the taxpayer, the department is legally empowered to convert the equal amount of foreign currency into Pak rupees and adding this amount to his income chargeable to tax.
Sources said that the taxpayers have to declare income earned outside Pakistan in their income tax returns and such income earned abroad is liable to tax provided the status of these taxpayers is of resident person in Pakistan. Presently, there is no wealth tax on fixed assets as the relevant wealth tax law was repealed.
The assets, whether purchased locally or abroad, could be probed in case the source of investment for purchasing assets is unexplained under section 111 of the Income Tax Ordinance 2001. In case assets purchased abroad have not been declared in the wealth statement, it is not possible for the department to add this to his income.
In the past, the department tried to access information about Pakistanis making huge investments in the real estate business in United Arab Emirates (UAE). The exercise was done to pinpoint potential Pakistani investors who are out of the tax net. However, the department was unable to proceed against such Pakistanis due to weak enforcement. The provisions of Income Tax Ordinance of 2001 are weak, almost non-existent, especially with respect to international money transfers. The exercise was not successful because of the legal provisions being insufficient and ineffective, sources added.
Explaining section 111, analysts said that the concept behind its provisions was to bring into account under the chargeability of such incomes that either have no source or a taxpayer fails to explain its sources or the assets are recorded below transactional value actually transacted. In this way, it is the taxation of income, which is either consciously or by fiction concealed/avoided from the tax authorities. The section 111 has been drafted to cater this situation.
Sources said that if a Pakistani is doing business in the UK and earning income/profit abroad, he would be liable to declare such profit in the income tax returns. Under Income Tax Ordinance, he has to declare world income in Pakistan. However, the status of the taxpayer as a resident must be determined before chargeability of tax.
There are two scenarios of taxation of unexplained income and assets under income tax laws: (i) if a taxpayer has, say, paid tax in UK, he has to declare his income and tax paid to the UK tax department and has to declare the tax paid in the income tax return filed in Pakistan. Under the Avoidance of Double Taxation Convention inked with the UK, if a person has paid the tax in UK, he will be entitled to claim its credit in Pakistan; in the presence of Avoidance of Double Taxation agreement, if a person has paid tax in UK and subsequently declared his income in Pakistan, he can claim credit in Pakistan. He would inform the department that he has paid tax in UK for claiming credit in Pakistan; (ii) in case there is no treaty on Avoidance of Double Taxation with a specific country, the taxpayer has to pay additional tax in Pakistan even if he has paid the due tax abroad.
When asked about foreign assets declarations by top government officials, tax experts said that the President, Prime Minister and MNAs have to file their income tax returns. Under section 114 of the Income Tax Ordinance 2001, every person having taxable income is required to file returns. Similarly, every resident person is required to file wealth statement if his income is more than Rs 5 lakh per year under section 116 of the Ordinance 2001.
Thus, the President, Prime Minister and MNAs have to declare assets including foreign assets. They have to file statements of assets and liabilities to the government inclusive of assets belonging to spouse and dependent children. The question arises whether the top government functionaries are declaring foreign assets in their respective wealth statements or these statements are not being filed by them, experts added.
Trading was light because U.S. markets are closed Monday for Memorial Day.
Benchmark crude for July delivery was down 35 cents to $61.32 a barrel by midday in Singapore in electronic trading on the New York Mercantile Exchange. On Friday, the contract rose 62 cents to settle at $61.67.
Oil has rallied on investor optimism that the worst of the global economic downturn is over. Traders will get fresh data to mull this week when the U.S. releases a consumer confidence index for May and reports on sales of existing and new homes last month.
In Asia, there are signs that the drop in exports has bottomed, although the outlook remains murky.
Investors will also be looking for evidence of increased demand as the U.S. summer driving season begins.
“The $60 level implies that we’re going to have a V-shaped recovery in the global economy, and there’s really very little evidence of that,” said Victor Shum, an energy analyst with consultancy Purvin & Gertz in Singapore.
“In the near-term, the rhetoric about post-Memorial Day driving activity may provide support, but eventually fundamentals will re-exert themselves in the market,” he said.
The Organization of Petroleum Exporting Countries meets on Wednesday in Vienna to discuss a possible production cut that would add to 4.2 million barrels a day of output reductions the cartel has announced since September.
OPEC leaders this year have said they want the price of crude at $70 a barrel, and most analysts say the recent jump to above $60 from below $35 in March will keep the group from any further production cuts.
“We don’t expect any changes in output targets,” Shum said. “The price is too high to cut.”In other Nymex trading, gasoline for June delivery was steady at $1.84 a gallon and heating oil fell 0.72 cent to $1.53 a gallon. Natural gas for June delivery dropped 2.5 cents to $3.49 per 1,000 cubic feet.
In London, Brent prices slid 29 cents to $60.49 a barrel on the ICE Futures exchange. Posted by graadil at 3:10 PM 0 comments Monday, May 18, 2009Taxpayers foreign assets: FBR has authority to investigate ISLAMABAD: The Federal Board of Revenue (FBR) has legal authority to investigate assets held outside Pakistan, depending on whether the tax authorities have sufficient evidence of unexplained assets under Income Tax Ordinance 2001. Sources told Business Recorder on Saturday that if the assets purchased outside Pakistan have not been declared in the wealth statement, it is difficult to check the source or extent of investment. Without authentic evidence, it is impossible to assess the source of investment.
However, the most important issue during the entire exercise is to determine the resident status of the taxpayer. This alone would form the basis for investigating any Pakistani with assets abroad. Resident status means a person who has lived in Pakistan or stayed in Pakistan for 183 days or more in one fiscal year under Income Tax Ordinance 2001.
Under relevant clause on exchange of information under the Avoidance of Double Taxation Convention, the department can ask tax authorities of other countries (bilateral agreement) to provide taxpayer profile or information about a Pakistani living abroad. Based on this information, the income tax department can probe assets abroad. If the source of investment has not been explained by the taxpayer, the department is legally empowered to convert the equal amount of foreign currency into Pak rupees and adding this amount to his income chargeable to tax.
Sources said that the taxpayers have to declare income earned outside Pakistan in their income tax returns and such income earned abroad is liable to tax provided the status of these taxpayers is of resident person in Pakistan. Presently, there is no wealth tax on fixed assets as the relevant wealth tax law was repealed.
The assets, whether purchased locally or abroad, could be probed in case the source of investment for purchasing assets is unexplained under section 111 of the Income Tax Ordinance 2001. In case assets purchased abroad have not been declared in the wealth statement, it is not possible for the department to add this to his income.
In the past, the department tried to access information about Pakistanis making huge investments in the real estate business in United Arab Emirates (UAE). The exercise was done to pinpoint potential Pakistani investors who are out of the tax net. However, the department was unable to proceed against such Pakistanis due to weak enforcement. The provisions of Income Tax Ordinance of 2001 are weak, almost non-existent, especially with respect to international money transfers. The exercise was not successful because of the legal provisions being insufficient and ineffective, sources added.
Explaining section 111, analysts said that the concept behind its provisions was to bring into account under the chargeability of such incomes that either have no source or a taxpayer fails to explain its sources or the assets are recorded below transactional value actually transacted. In this way, it is the taxation of income, which is either consciously or by fiction concealed/avoided from the tax authorities. The section 111 has been drafted to cater this situation.
Sources said that if a Pakistani is doing business in the UK and earning income/profit abroad, he would be liable to declare such profit in the income tax returns. Under Income Tax Ordinance, he has to declare world income in Pakistan. However, the status of the taxpayer as a resident must be determined before chargeability of tax.
There are two scenarios of taxation of unexplained income and assets under income tax laws: (i) if a taxpayer has, say, paid tax in UK, he has to declare his income and tax paid to the UK tax department and has to declare the tax paid in the income tax return filed in Pakistan. Under the Avoidance of Double Taxation Convention inked with the UK, if a person has paid the tax in UK, he will be entitled to claim its credit in Pakistan; in the presence of Avoidance of Double Taxation agreement, if a person has paid tax in UK and subsequently declared his income in Pakistan, he can claim credit in Pakistan. He would inform the department that he has paid tax in UK for claiming credit in Pakistan; (ii) in case there is no treaty on Avoidance of Double Taxation with a specific country, the taxpayer has to pay additional tax in Pakistan even if he has paid the due tax abroad.
When asked about foreign assets declarations by top government officials, tax experts said that the President, Prime Minister and MNAs have to file their income tax returns. Under section 114 of the Income Tax Ordinance 2001, every person having taxable income is required to file returns. Similarly, every resident person is required to file wealth statement if his income is more than Rs 5 lakh per year under section 116 of the Ordinance 2001.
Thus, the President, Prime Minister and MNAs have to declare assets including foreign assets. They have to file statements of assets and liabilities to the government inclusive of assets belonging to spouse and dependent children. The question arises whether the top government functionaries are declaring foreign assets in their respective wealth statements or these statements are not being filed by them, experts added.
Internet Marketing VS Forex Currency Trading
Have you noticed that when someone’s trying to sell you something — such as a system for making money — they always make it look far easier than it is?
Let’s look at two Internet businesses, almost as diametrically opposed as it’s possible to be — Internet Marketing and Forex Currency Trading.
You’ve probably heard the old Internet adage — build a better website and they will come. Well it ain’t true!
You could put up a site advertising dollars for a dime and they still wouldn’t come — because they wouldn’t know where to look!
Let’s look at what you need to have in place in order to build a successful Internet marketing business.
First of all, you need a product. If you’ve been reading the recent Internet marketing blurb you’ll know you need a niche product.
Actually, the new thing is sub-niche but whatever they call it, you need a product for which there is high demand but low supply.
Finding a suitable niche is the hardest part of the whole process but let’s say you have a killer product, what else do you need?
The List.
Ask any Internet marketeer and they will say that the most important part of your business is your opt-in list.
For people to join your list you usually have to give them something of value such as a free eBook or report on a subject related to your main product line.
To keep them interested, you need to keep in touch with them offering them additional information, advice and tips.
Website.
To promote your opt-in list you need a website (although there are other ways of promoting your list, too) with features that will encourage people to sign up to your list.
You also need a killer website with killer copy to describe — and sell — your killer product. This may or may not be the same as the one you use for your opt-in list.
Killer copy.
Maybe you’re not a good copywriter. There are many eBooks on the subject that can help you or you can pay someone to write copy for you.
You need a domain name, preferably one with some relation to the product but good domain names are becoming increasing difficult to find.
Ads.
To get people to visit your website in the first place you need to register it with the search engines.
SEO (Search Engine Optimisation) is an art in itself. You can mug up on the subject or pay someone to do the job for you (but be aware that not all experts are!).
You might also want to place ads for your list in newsletters and ezines.The better ones will charge you although you might get a free ad in return for an article.
Autoresponder.
To automate your business you need an autoresponder. These clever devices automatically send emails to everyone on your opt-in list at predetermined intervals, and contain predetermined copy.
For example, you could create a series of emails containing, say, five parts of a free course to be sent one a day over the first five days.
Then emails would be sent once a week advertising a different product each time.
Whenever anyone signs up to your list they automatically start at the beginning so everyone gets the full cycle of marketing material.
We haven’t even looked at affiliate sales and marketing but I’m sure you get the picture.
The basic idea of selling over the Internet sounds good but there’s a lot more to it than most people realise.
Forex Currency Trading
Someone said that trading is the last frontier, the last place where men and women can stand up and pit themselves against the world.
It sounds very Wild Westish but most of it is true! You win or lose entirely by your own efforts and if you win, it’s like having your very own bank.
However, even owning a bank is a business and you still have to work hard to put the money there — and to keep it!
Unlike Internet marketing where all your efforts, in one form or another, are geared towards making people join your list and then selling them stuff.
Currency Trading has no customers. That’s worth repeating — with currency trading, you don’t need customers.
No customers means you don’t need any of the associated accoutrements that go with Internet marketing such as:
ProductsWeb siteDomain nameOpt-in listAdseBooks and reportsAutoresponderAny other marketing aids
So far so good, but what do you have to do and what do you need? Well, you need to know what currency prices are doing.
You can get a list of prices at the close of each trading day free from many web sites. If you want to trade during the day — intraday trading, you can get real-time prices for a nominal fee from several data suppliers.
In the foreign exchange currency market, commonly called forex, you can get this data and charting software free from many web sites.
Okay, that’s the easy bit. In order to trade currencies, you need to analyse the data and determine which way price is heading.
In other words you need a system and this will require study and dedication.
There’s lots of other stuff you have to know, too — trading terminology, margin, leverage, money management, order types, trader psychology and more.But all of this is available in eBooks and courses and on the Net.
Okay, that’s the easy bit. In order to trade currencies, you need to analyse the data and determine which way price is heading.
In other words you need a system and this will require study and dedication.
There’s lots of other stuff you have to know, too — trading terminology, margin, leverage, money management, order types, trader psychology and more.
But all of this is available in eBooks and courses and on the Net.
You also need some money upfront to fund your trading account. With forex you can begin with as little as $300-500 although you would be advised to start with more.
So while you don’t have the ongoing quest for new customers, new products and inventive sales techniques, you do need some sort of education or training before you begin and you need discipline while you’re trading.
Making money takes work whether it’s online or off. Make sure you know what’s involved before you start and remember that the more you put into a business, the easier it gets.
by Amin Sadak
Let’s look at two Internet businesses, almost as diametrically opposed as it’s possible to be — Internet Marketing and Forex Currency Trading.
You’ve probably heard the old Internet adage — build a better website and they will come. Well it ain’t true!
You could put up a site advertising dollars for a dime and they still wouldn’t come — because they wouldn’t know where to look!
Let’s look at what you need to have in place in order to build a successful Internet marketing business.
First of all, you need a product. If you’ve been reading the recent Internet marketing blurb you’ll know you need a niche product.
Actually, the new thing is sub-niche but whatever they call it, you need a product for which there is high demand but low supply.
Finding a suitable niche is the hardest part of the whole process but let’s say you have a killer product, what else do you need?
The List.
Ask any Internet marketeer and they will say that the most important part of your business is your opt-in list.
For people to join your list you usually have to give them something of value such as a free eBook or report on a subject related to your main product line.
To keep them interested, you need to keep in touch with them offering them additional information, advice and tips.
Website.
To promote your opt-in list you need a website (although there are other ways of promoting your list, too) with features that will encourage people to sign up to your list.
You also need a killer website with killer copy to describe — and sell — your killer product. This may or may not be the same as the one you use for your opt-in list.
Killer copy.
Maybe you’re not a good copywriter. There are many eBooks on the subject that can help you or you can pay someone to write copy for you.
You need a domain name, preferably one with some relation to the product but good domain names are becoming increasing difficult to find.
Ads.
To get people to visit your website in the first place you need to register it with the search engines.
SEO (Search Engine Optimisation) is an art in itself. You can mug up on the subject or pay someone to do the job for you (but be aware that not all experts are!).
You might also want to place ads for your list in newsletters and ezines.The better ones will charge you although you might get a free ad in return for an article.
Autoresponder.
To automate your business you need an autoresponder. These clever devices automatically send emails to everyone on your opt-in list at predetermined intervals, and contain predetermined copy.
For example, you could create a series of emails containing, say, five parts of a free course to be sent one a day over the first five days.
Then emails would be sent once a week advertising a different product each time.
Whenever anyone signs up to your list they automatically start at the beginning so everyone gets the full cycle of marketing material.
We haven’t even looked at affiliate sales and marketing but I’m sure you get the picture.
The basic idea of selling over the Internet sounds good but there’s a lot more to it than most people realise.
Forex Currency Trading
Someone said that trading is the last frontier, the last place where men and women can stand up and pit themselves against the world.
It sounds very Wild Westish but most of it is true! You win or lose entirely by your own efforts and if you win, it’s like having your very own bank.
However, even owning a bank is a business and you still have to work hard to put the money there — and to keep it!
Unlike Internet marketing where all your efforts, in one form or another, are geared towards making people join your list and then selling them stuff.
Currency Trading has no customers. That’s worth repeating — with currency trading, you don’t need customers.
No customers means you don’t need any of the associated accoutrements that go with Internet marketing such as:
ProductsWeb siteDomain nameOpt-in listAdseBooks and reportsAutoresponderAny other marketing aids
So far so good, but what do you have to do and what do you need? Well, you need to know what currency prices are doing.
You can get a list of prices at the close of each trading day free from many web sites. If you want to trade during the day — intraday trading, you can get real-time prices for a nominal fee from several data suppliers.
In the foreign exchange currency market, commonly called forex, you can get this data and charting software free from many web sites.
Okay, that’s the easy bit. In order to trade currencies, you need to analyse the data and determine which way price is heading.
In other words you need a system and this will require study and dedication.
There’s lots of other stuff you have to know, too — trading terminology, margin, leverage, money management, order types, trader psychology and more.But all of this is available in eBooks and courses and on the Net.
Okay, that’s the easy bit. In order to trade currencies, you need to analyse the data and determine which way price is heading.
In other words you need a system and this will require study and dedication.
There’s lots of other stuff you have to know, too — trading terminology, margin, leverage, money management, order types, trader psychology and more.
But all of this is available in eBooks and courses and on the Net.
You also need some money upfront to fund your trading account. With forex you can begin with as little as $300-500 although you would be advised to start with more.
So while you don’t have the ongoing quest for new customers, new products and inventive sales techniques, you do need some sort of education or training before you begin and you need discipline while you’re trading.
Making money takes work whether it’s online or off. Make sure you know what’s involved before you start and remember that the more you put into a business, the easier it gets.
by Amin Sadak
Tuesday, June 9, 2009
BASICS OF FOREX
What is Forex Trading?
Foreign Exchange (forex) is the simultaneous buying of one currency, and selling of another currency. Daily volume in the currency market exceeds $1.4 trillion, making it the largest and most liquid market in the world. Unlike other financial markets, the forex market has no physical location or central exchange. It is an over-the-counter market where buyers and sellers including banks, corporations, and private investors conduct business. Foreign exchange trading takes place in financial trading canters all over the world, including New York, London, and Tokyo creating one cohesive, international market. The huge number and diversity of players involved make it difficult for even governments to control the direction of the market. The unmatched liquidity and around-the-clock global activity make forex the ideal market for active traders. Traditionally the forex market was only available to larger entities trading currencies for commercial and investment purposes through banks. Now, specialized Forex trading platforms allow smaller financial institutions and retail investor’s access to a similar level of liquidity as the major foreign exchange banks, by offering a gateway to the primary (Inter bank) market.
What is Buying/Selling:
In the forex market currencies are always priced in pairs; therefore all trades result in the simultaneous buying of one currency and the selling of another. The objective of currency trading is to exchange one currency for another in the expectation that the market rate or price will change so that the currency you bought has increased its value relative to the one you sold. If you have bought a currency and the price appreciates in value, the trader must sell the currency back in order to lock in the profit. An open trade or position is one in which a trader has either bought/sold one currency pair and has not sold/bought back the equivalent amount to effectively close the position.
Quoting Conventions:
The first currency in the pair is referred to as the base currency, and the second currency is the counter or quote currency. The U.S Dollar, as the world’s dominant currency, is usually considered the base currency for quotes, and includes USD/JPY, USD/CHF, and USD/CAD. This means that quotes are expressed as a unit of $1 USD per the other currency quoted in the pair. The exceptions are the Euro, Great Britain pound, and Australian dollar. These currencies are quoted as dollars per foreign currency.
Foreign Exchange (forex) is the simultaneous buying of one currency, and selling of another currency. Daily volume in the currency market exceeds $1.4 trillion, making it the largest and most liquid market in the world. Unlike other financial markets, the forex market has no physical location or central exchange. It is an over-the-counter market where buyers and sellers including banks, corporations, and private investors conduct business. Foreign exchange trading takes place in financial trading canters all over the world, including New York, London, and Tokyo creating one cohesive, international market. The huge number and diversity of players involved make it difficult for even governments to control the direction of the market. The unmatched liquidity and around-the-clock global activity make forex the ideal market for active traders. Traditionally the forex market was only available to larger entities trading currencies for commercial and investment purposes through banks. Now, specialized Forex trading platforms allow smaller financial institutions and retail investor’s access to a similar level of liquidity as the major foreign exchange banks, by offering a gateway to the primary (Inter bank) market.
What is Buying/Selling:
In the forex market currencies are always priced in pairs; therefore all trades result in the simultaneous buying of one currency and the selling of another. The objective of currency trading is to exchange one currency for another in the expectation that the market rate or price will change so that the currency you bought has increased its value relative to the one you sold. If you have bought a currency and the price appreciates in value, the trader must sell the currency back in order to lock in the profit. An open trade or position is one in which a trader has either bought/sold one currency pair and has not sold/bought back the equivalent amount to effectively close the position.
Quoting Conventions:
The first currency in the pair is referred to as the base currency, and the second currency is the counter or quote currency. The U.S Dollar, as the world’s dominant currency, is usually considered the base currency for quotes, and includes USD/JPY, USD/CHF, and USD/CAD. This means that quotes are expressed as a unit of $1 USD per the other currency quoted in the pair. The exceptions are the Euro, Great Britain pound, and Australian dollar. These currencies are quoted as dollars per foreign currency.
Top Ten Forex Brokers Who Can Change Your Fortune
by Rod Soto
There are several different trading markets available to customers. The hardest to master without the proper resource is the currency exchange market. With the proper resources at your disposal this market is easy to handle and can make you a profit. Sitting back and watching as you get destroyed by the market is not helpful you must be active.
It is also very complex since it is not limited to one or two countries like other trades. Involvement of skilled traders from all over the world, huge profit margins compared to share market makes it unique. The most important single resource required to play in a forex market is huge money and to safe guard this money and make profit from it one should make some strategies.
Not all markets use broking agencies but for the forex market they are important because of it volatile nature. These forex brokers often work with over a hundred thousand accounts internationally. These brokers are competing intensely to provide the best facilities for their customers.
Depending upon their performance and customer satisfaction index, these agencies are given rankings on regular basis; it is a prestigious issue to every broker to get top ten forex broker ranking continuously. They will not leave any stone unturned to get a place in a list of top ten or top hundred, depending upon the size of their agency.
The primary goal of the forex broker is to improve their customer satisfaction ranking so that theif overall ranking is healthy and looks appealing to future and current customers. Also this ranking shows their competition that they are popular or not causing other agencies to safe guard their clients. Although their customers are important the ranking is for overall importance so nothing is neglected.
Broking agencies hold no guarantees at the beginning many come and go in just a matter of a couple of years. New investors to the market are often fooled by start up companies that appear to offer them deals they cannot resist. New or potential investors should keep to the companies that are known for their success.
The number one broking agency is FXCM holdings. They have proven time and time again that their fincancial services are beneficial and will help you to make a profit. Their members are specialized in online trading as well as speculators in the foreign exchange market. The top ten are listed below; 1. FXCM 2. Interactive Brokers 3. MG Forex 4. Alpari-idc 5. Hot Spot FX 6. MB 7. WestCapFx 8. Dukascopy 9. Oanda 20. eToro.
Once a company has obtained a position on the top ten list it is hard to keep that position. The companies can keep that position only by giving their best effort on all fronts. The FXCM company realized this and has shown excellence in all required fields.
There are several different trading markets available to customers. The hardest to master without the proper resource is the currency exchange market. With the proper resources at your disposal this market is easy to handle and can make you a profit. Sitting back and watching as you get destroyed by the market is not helpful you must be active.
It is also very complex since it is not limited to one or two countries like other trades. Involvement of skilled traders from all over the world, huge profit margins compared to share market makes it unique. The most important single resource required to play in a forex market is huge money and to safe guard this money and make profit from it one should make some strategies.
Not all markets use broking agencies but for the forex market they are important because of it volatile nature. These forex brokers often work with over a hundred thousand accounts internationally. These brokers are competing intensely to provide the best facilities for their customers.
Depending upon their performance and customer satisfaction index, these agencies are given rankings on regular basis; it is a prestigious issue to every broker to get top ten forex broker ranking continuously. They will not leave any stone unturned to get a place in a list of top ten or top hundred, depending upon the size of their agency.
The primary goal of the forex broker is to improve their customer satisfaction ranking so that theif overall ranking is healthy and looks appealing to future and current customers. Also this ranking shows their competition that they are popular or not causing other agencies to safe guard their clients. Although their customers are important the ranking is for overall importance so nothing is neglected.
Broking agencies hold no guarantees at the beginning many come and go in just a matter of a couple of years. New investors to the market are often fooled by start up companies that appear to offer them deals they cannot resist. New or potential investors should keep to the companies that are known for their success.
The number one broking agency is FXCM holdings. They have proven time and time again that their fincancial services are beneficial and will help you to make a profit. Their members are specialized in online trading as well as speculators in the foreign exchange market. The top ten are listed below; 1. FXCM 2. Interactive Brokers 3. MG Forex 4. Alpari-idc 5. Hot Spot FX 6. MB 7. WestCapFx 8. Dukascopy 9. Oanda 20. eToro.
Once a company has obtained a position on the top ten list it is hard to keep that position. The companies can keep that position only by giving their best effort on all fronts. The FXCM company realized this and has shown excellence in all required fields.
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